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Investing.com - DA Davidson raised its price target on U.S. Bancorp (NYSE:USB) to $59.00 from $57.00 on Friday, while maintaining a Buy rating on the stock. The new target aligns with broader analyst sentiment, as the stock currently trades near $45.65 with consensus targets ranging from $50 to $70.
The firm cited U.S. Bancorp’s strong year-over-year positive operating leverage of 530 basis points in the third quarter of 2025, marking the fourth consecutive quarter with operating leverage of 190 basis points or greater.
This performance represents a significant turnaround for the bank, which had reported negative operating leverage in seven of the previous eight years, according to DA Davidson.
The firm noted that U.S. Bancorp’s strong operating leverage this quarter was primarily driven by revenue growth, with positive momentum heading into 2026. The bank has already achieved its medium-term profitability targets in the third quarter of 2025, positioning it at the upper end compared to peers.
DA Davidson also highlighted improvements in U.S. Bancorp’s credit quality and capital trends, factors that could help the bank regain its premium valuation if the positive revenue trend continues.
In other recent news, U.S. Bancorp reported its third-quarter earnings for 2025, which exceeded analysts’ expectations. The company achieved an earnings per share (EPS) of $1.22, surpassing the forecasted $1.12, representing an 8.93% surprise. Additionally, U.S. Bancorp’s revenue reached $7.3 billion, which was higher than the anticipated $7.16 billion. These results highlight the bank’s strong financial performance during this period. The earnings announcement was followed by a rise in U.S. Bancorp’s stock, reflecting investor optimism. No other major developments, such as mergers or acquisitions, were reported alongside the earnings. Analyst firms have not provided any recent upgrades or downgrades for the company. These developments are part of the ongoing financial updates from U.S. Bancorp.
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